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Public procurement: C4 Centre calls for institutional reforms and multiple intervention points

KUALA LUMPUR: The government should adopt an institutional approach to reforming the public procurement process, focusing on preventative measures and interventions for problematic projects.

Centre to Combat Corruption and Cronyism (C4 Centre) chief executive officer Pushpan Murugiah said there was a need for more transparent vetting processes for government contractors, restrictions on subcontracting, and regular audits and progress reports.

He also proposed granting quasi-judicial powers to bodies that could mitigate and annul contracts found to be fraudulent.

"Public procurement is a complex issue that cannot be solved by a single reform or law.

"While the Prime Minister's (Datuk Seri Anwar Ibrahim) promise to end direct negotiations is commendable, its practical implementation remains uncertain, given the potential necessity for direct negotiations in certain situations," he told the New Straits Times.

Pushpan praised the government's plan to introduce a Government Procurement Act, which aims to standardise procurement processes, aligning with practices in developed nations.

However, he said that the specifics of the Act were yet to be seen.

C4 Centre has submitted a report with research findings and recommendations on the proposed legislation.

"We look forward to reviewing the draft Act and invite stakeholders, including the media, to discuss our recommendations on procurement reform," he added.

Stressing the importance of a transparent and well-governed procurement process, which he believes is crucial for effective governance and societal benefit, he said: "Infrastructure development relies on procurement practices that serve the public interest rather than the interests of powerful individuals."

Yesterday, the Malaysian Anti-Corruption Commission revealed that 20 per cent of complaints received between 2022 and July 2024 pertained to procurement issues.

Its deputy chief commissioner (prevention) Datuk Seri Norazlan Mohd Razali said that investigations into public procurement had increased to 66 per cent as of July 20 this year compared with 59 per cent and 60 per cent in 2023 and 2022, respectively.

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